WASHINGTON, D.C. — In a series of aggressive moves, the Trump administration has cut ties with Anthropic, the creator of the Claude AI models. The ban is not limited to direct government use; by labeling the company a “supply-chain risk,” the Pentagon is now forcing tens of thousands of private defense contractors to abandon Anthropic’s technology or risk losing their government contracts.
1. The “Betrayal” at the Pentagon
The fallout stems from Anthropic’s refusal to grant the military “unrestricted access” to its models. CEO Dario Amodei had reportedly insisted on usage limits to prevent AI from being used in lethal kinetic operations—a stance Hegseth characterized as “corporate virtue-signaling.”
- Hegseth’s Critique: In a scathing post on X, Hegseth accused Anthropic of a “master class in arrogance,” stating that the “Department of War” must have full access to AI for every lawful purpose.
- Silicon Valley vs. National Security: Hegseth slammed the company’s “effective altruism” philosophy, arguing it placed “Silicon Valley ideology above American lives.”
2. The 6-Month Phaseout
President Trump, using Truth Social, made his stance clear: “We don’t need it, we don’t want it, and will not do business with them again!”
- Immediate Cease-and-Desist: Most federal agencies must stop using Anthropic tools immediately.
- Military Grace Period: A six-month window has been granted to the Pentagon, FEMA, and USCIS to allow for a “seamless transition” to what Hegseth described as “more patriotic” AI services.
- Contract Loss: Anthropic had recently secured a $200 million Pentagon contract, which is now voided.
3. What the “Supply-Chain Risk” Designation Means
Typically reserved for companies from adversary nations like China or Russia, this designation has massive implications:
- Contractor Blacklist: Any company that does business with the U.S. military is now prohibited from using Anthropic’s services in their commercial activity.
- Market Impact: This move is expected to drive major defense contractors toward competitors like Palantir, Microsoft, or Anduril, who have signaled a greater willingness to integrate AI into combat systems.
The “Patriotic AI” Shift: Key Impacted Agencies
| Agency | Former Use of Anthropic | Transition Period |
| Department of Defense | Combat simulations and logistics. | 6 Months |
| FEMA | Disaster response and resource mapping. | 6 Months |
| USCIS | Processing and threat detection. | 6 Months |
| General Federal Agencies | Administrative tasks and coding. | Immediate |